Luxury Needs Popularity: Jogging Or Offense?

The luxury industry has changed its high growth in China this year. The world's largest luxury brand Lu Wei Moxuan group and the third largest luxury brand Kai Yun group, in 2012, for the first time in the United States, its sales growth has surpassed China for the first time in many years. The two said its sales performance in the United States has increased rapidly, becoming a growth point alongside China.

Although for many luxury brands, China's Asia Pacific market is still a region where luxury goods are growing more widely, luxury brands are already adjusting their brand's strategic layout. Recently, the Century Lianhua supermarket, which started with the sale of daily necessities, sold luxury products in its peaceful shopping city. The famous brand integrated store "Europe Kai Cheng" brought more than 6000 products from European famous brands such as Gucci, Prada and Armani to open the door. This immediately attracted the attention of people inside and outside the industry.

　　 Is it a gimmick or a win-win?

It is reported that "Kai Kai Cheng" is authorized by Mario Bruschi S.P.A, a well-known department store in Italy. This is a brand Licensing companies with many European famous brands on its hands. Previously, the company only had cooperation in department stores and five star hotels in 4 domestic cities. This "settled" in the peaceful shopping city is the first time that "Europe Kai Cheng" has entered Zhejiang Province, and it is also the first time to cooperate with the supermarket.

Although the sale of luxuries in the peace shopping mall is not really a luxury sale in the supermarket, which is exactly what people imagine, they are selling two items of luxury goods in comparison with other goods, but only building a luxury area in the building, strictly speaking, it is not sold in supermarkets. But obviously, in order to invite these big players to stay, the Century Lianhua peace shopping city is expensive. The official of "Europe city" revealed that the cooperation project had already started negotiations 3 years ago. At first, Italy was reluctant to enter the supermarket. Later, after in-depth understanding, the two sides finally reached a cooperation intention at the beginning of this year.

"Italy culture and Chinese culture can be integrated in 360 degrees." Mr. Angela, President of the Italy branch of the Shanghai chamber of Commerce in China, said he was optimistic about the development of the city. Cai Lanying, chairman of Hangzhou Century Lianhua Chinese business group, also said that the cooperation with Italy department stores is an attempt to innovate and upgrade the industrial structure of Century Lianhua. It has milestone significance, and "Europe Kai Cheng" is only the first step of cooperation between the two sides.

Supermarkets that sell fast food products are holding hands to Italy's well-known department stores and selling luxury products for testing. This is a new exploration in China. According to the reporter, in the past month's sales process, the sales performance of Europe Kai Cheng seems to be ideal. Many consumers say that "the price of vegetables is more and more expensive, but luxury goods feel cheaper and cheaper".

　　 Luxury needs popularity.

Luxury brand stores are never mixed with mass consumer goods. Instead, two or three line brands want to be close to luxury brands at cost, so as to enhance their brand value. But the city of Europe is doing the opposite. What does it value?

One of the breakthroughs of the industry is the use of supermarket value cards to consume luxury goods. "This is a great way to win people's popularity. Century Lianhua consumer card is the most popular consumer card in Hangzhou city. To be polite, it's not that supermarkets are rushing to catch up with luxury brands, but the latter are willing to "condescend". It can be seen by the discerning eye that they come to see more people in the supermarket and shop on the side of the others.

And the director of the city of Europe said that the consumption group of "Europe Kai Cheng" is mainly targeted at customers over 40 years old. Through professional buyers, relatively inexpensive luxuries are introduced, and the goods are guaranteed. The consumption demand of the white-collar workers in the two or three line cities can be met through the consumption channels of supermarkets. This cooperation, Italy is to see the medieval Lianhua customer group of white-collar workers.

However, some industry experts say that some customers who want to spend more money and buy new luxury goods in department stores are not very few. The domestic luxury market has just entered the stage of rapid development. It is still very immature. Many customers have strong consumer awareness only if they can buy genuine products in department stores, so they are not optimistic about the prospects of sales in large supermarkets. "Supermarket luxury counters are designed to attract consumers at low prices, but contrary to expectations, limited product varieties lead to a reduction in consumer confidence and eventual failure."

　　 Is it jogging or attacking?

In recent years, the sales momentum of international luxury goods in China has begun to slow down, but that does not mean that they are willing to lay down their positions. The "breakthrough" of this Century Lianhua supermarket has attracted many luxury brands, which seem to be worried that their brand image will be greatly reduced, slowing down the pace of opening stores in China.

Recently, a number of foreign luxury brands in the first quarter of 2013 earnings came out. PPR group, the parent company of Gucci, has delivered a good transcript while announcing its slowdown in China at this time. It will reduce its annual 10~15 stores to 3~4 stores every year. Instead, it will refurbish and expand existing stores to maintain the high-end image of the brand.

"At this stage, we need to build a more professional framework and implement a more targeted strategy. Chinese consumers are growing into more cultural and tasteful customer groups. Gucci is seeking to establish a more long-term, in-depth and personalized relationship with Chinese customers, with a view to consolidating customer loyalty. " Gucci believes that these initiatives will play an important role in the coming years.

LVMH also halted LV's global expansion plan. LVMH group chief financial officer said: "the weak demand in Asian markets, China's shopping center passenger flow decreased significantly." The adjustment of Prada is not only to return the foundries to Europe, but also to other emerging markets. In 2012, Prada opened a men's clothing store and a women's clothing store in MoroccoMall, the largest city in Morocco, Casablanca. It also opened third stores in Angola, capital of Luanda and Luanda of the capital.

Some experts point out that most luxury brands are still "eating old books" and are slow to disseminate their brand image. Their outdated marketing methods have been unable to keep up with the brand new consumption concept of people seeking novelty, seeking difference and seeking fast. Although some brands realize the importance of changing marketing methods and gradually benefit from it, most brands still stick to the old marketing mode and lose a large number of customers.

This year, many international luxury luxury brands have chosen to adjust their plans for opening stores in China. The overall adjustment has become the main direction, especially in improving the profitability of single stores. They began to think about how the stores that have already opened in China's first tier cities should increase their single store profits rather than just opening new stores, which seems to indicate that the luxury of changing supermarket into Chinese cabbage is a legend.